Powell put a cat among the pigeons by suggesting he was minded to "look through" tariff-induced inflation by not increasing interest rates.
Powell warns of ‘long way to go’ before Fed can maybe cut interest rates
BY CHRISTOPHER RUGABER AND ASSOCIATED PRESS
July 31, 2025
Jerome Powell’s Federal Reserve holds rates steady despite immense pressure from Trump to cut, cut, cut
BY MARCO QUIROZ-GUTIERREZ
Fed officials are expected to hold interest rates steady at their two-day policy meeting next week.
The Fed cited the economy’s resilience as part of its motivation for maintaining rates.
Recent "releases helped to validate the dovish arguments pushing for more rate cuts this year," Deutsche Bank's Henry Allen noted.
Jerome Powell appeared to back a cut to borrowing rates and played down inflation risks in his annual speech at Jackson Hole.
The Federal Reserve chair underscored the impacts of Trump's tariffs and immigration policies.
Powell on Friday gave a tepid indication of possible cuts ahead as he noted a high level of uncertainty.
